#NuLegacy #Gold Is First In Line To Benefit From #Barrick's Renewed Focus On Core Assets - NuLegacy Gold Corporation (OTCMKTS:NULGF) | Seeking Alpha

NuLegacy is on the verge of a major turning point.  Today's excellent results only confirms the desirability of the Iceberg deposit. 

This from SeekingAlpha:

When we asked about the remaining earn-in obligations, CEO Mr. Anderson assured us that only $700,000 remains to be spent, and the earn-in will be completed by October 15 this year. Not long after that a meeting with Barrick Gold will be called to discuss the future working arrangements for the Iceberg project. NuLegacy Gold currently holds approximately $3.2M in cash and marketable securities, more than enough to fund the company well beyond the October 15 dead line.

(Goldrush across the valley from Iceberg. Source: Company presentation)

Beyond The Earn-In

Barrick Gold will have 90 days to decide on how it wishes to proceed once the earn-in has been confirmed. According to the agreement between the two companies, the major can either earn back a 70% stake by spending $15M on further exploration; or remain a 30% minority partner.

If Barrick decides to spend $15M on further exploration and development of the Iceberg project in order to earn back a 70% stake, then NuLegacy Gold's ultimate 30% stake will also be carried to production without further dilution. This means that Barrick Gold would be responsible for funding Iceberg until production, and NuLegacy Gold will pay back its 30% share of development costs from cash flow once the mine is operational. In essence, NuLegacy Gold will own an asset very similar to a royalty on Barrick Gold's next mine in Nevada, and that will be worth a lot of money to any of the larger streaming or royalty companies.

And if Barrick Gold decides to remain a 30% minority partner, then NuLegacy Gold has a 70% stake in the next deposit down the road from Goldrush on the Cortez trend. Plenty of mid-tier miners are currently trying to find a footing in desirable jurisdictions and Iceberg is prime real estate in this context.

Importantly, this is not an endless exploration play with multiple cap raises and years of uncertainty. To the contrary, the time frame for the NuLegacy Gold story is very limited. The earn-in will be completed shortly after October 15, and Barrick Gold will need to make its choice by early Q1 2016. In fact, this limited time line is an important point we would like to emphasize about this particular play.

Read the whole article here: NuLegacy Gold Is First In Line To Benefit From Barrick's Renewed Focus On Core Assets - NuLegacy Gold Corporation (OTCMKTS:NULGF) | Seeking Alpha

#Gold stocks trading 30% below 200 day MA

From Shortsideoflong

Remarkably, 76% of the index posted 52 week new lows. Moreover, as we can see in the chart below, Gold & Silver mining index is currently trading 30% below its 200 day moving average. When we take into consideration all of the above, such kind of a selling pressure has only occurred a handful of times over the last two decades, and usually signals we are close to the selling exhuastion.

Chart Of The Day: Gold miners are currently trading 30% away from its 200 MA!

Source: Short Side Of Long

 

Resource Maven: It's ugly out there. #MiningStocks #Gold

What to do with your mining stocks? This from the "Resource Maven": I outlined my investing outlook to Maven subscribers mid-last week. The first point was: A crash might be coming. That was validated within 24 hours.      Another directive: Don’t try to catch a falling knife. I do not know what gold is going to do. Forced to guess, I would say there is more pain on the horizon. Chartists and technical analysts generally agree that, once it broke below $1,142, gold had another $100 to lose easily, perhaps more. Sentiment is negative; momentum is to the downside.      The only significant support I see for gold comes, ironically, from those seeking to profit off its slide: the shorts. Short selling positions are massive right now, in gold and in gold miners.

All those shorts create downward price pressure, to be sure – but only until prices slide enough that the betters get nervous.      Short selling is a very exposed gamble. The faster the price of gold falls the harder it will be for shorters to stick to their guns. The more gold declines the more pressure will build on shorters to buy gold to cover their bets.      So that’s positive for gold in the short term, albeit once the price weakens even more. The bigger the resulting bounce, the more confidence it will create for contrarian investors that this truly is the bottom.      After almost five years of pain, I think the mining bear market is throwing its final punches. This last leg down might last a few days, a few weeks, or a few months. Wish I knew, but I don’t.      What I do know is that, until it is over, things are going to be ugly for those of us left in mining. Then it will get better.      So hold on. Perhaps don’t bother checking on your mining stocks this week. Don’t let yourself check the price of gold too often. The bleeding will gradually slow, then stop, and then it will be time to average down on favorite holdings and establish positions in quality stocks that you have long eyed.      But no rush.

Resource Maven: It's ugly out there.